Kohn warns of 'serious shortcomings' in US macro-prudential framework
Former Fed vice-chair says inability to impose LTV and LTI ratios on mortgages may imperil rate weapon
Former Federal Reserve vice-chair Donald Kohn has warned of "serious shortcomings" in the US's macro-prudential framework, arguing regulators' lack of counter-cyclical tools could compromise monetary policy at a time when inflation and interest rates are at historic lows.
Writing in the Monetary Authority of Singapore's biannual macroeconomic review, published today (October 27), Kohn laments the macro-prudential toolkit available to US regulators is insufficiently "broad and diversified"
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